Offshore Private Funds - An Overview

So-called Private Funds ('PFs') are attracting considerable interest as platforms to hold a wide variety of assets, both for wealthy families and small groups of "club" investors.

Originating from ideas developed in the institutional fund space, PFs are typically bespoke structures with minimal or no fund regulatory status. There is no legal definition of a PF, which can be structured as legal entities as varied as limited partnerships, trusts and cellular companies.

A GLOBAL TREND

There are a number of reasons for the increased interest in PFs, including the following:

• A single platform for family offices to manage clients' wealth - with the ability to hold higher-risk assets (which might otherwise cause fiduciary risk concerns for trustees with duties to beneficiaries)